Macau gaming operators are intensifying their efforts to capture a larger market share by implementing various strategies to boost performance.
These strategies include expanding sales teams, revamping casino floors, increasing food and beverage offerings, and enhancing membership programs.
According to a recent UBS report following a meeting with operators in Macau last week, the investment bank highlights Galaxy’s successful use of its arena and an increase in marketing staff as key factors contributing to its market share gains for the quarter to date (QTD). ‘Galaxy’s initiatives appear most effective so far,’ the report states, underscoring the operator’s strong performance amid a competitive landscape.
In contrast, MGM’s market share has been adversely affected by hold volatility and seasonal fluctuations in August. However, the addition of new suites and villas is expected to enhance room offerings in the longer term.
Meanwhile, UBS also notes that Wynn and Melco are focusing on improving their membership programs to offer more customized services to premium customers.
SJM is actively ramping up its Grand Lisboa Palace (GLP) to attract higher property traffic. Sands, on the other hand, is concentrating on the renovation of the Londoner Phase II, aiming to minimize room outages and prepare for the reopening of the Venetian Arena in the fourth quarter of 2024.
Operators have also noted that the resilience of gaming demand remains strong, with only limited impact from recent stringent law enforcement actions targeting illicit money exchangers. Despite these regulatory pressures, operators are seeing growth in their customer databases, particularly with the addition of new and younger customers. This demographic shift indicates a healthy and evolving market.
Moreover, operators are increasingly adept at leveraging non-gaming events to attract customers and drive higher playing frequency. These events, ranging from concerts to cultural festivals, are proving effective in drawing diverse crowds and encouraging more frequent visits to casinos.
However, this growth in gaming demand is partially offset by challenges in the non-gaming sector. The broader macroeconomic environment appears to be dragging down non-gaming revenue, with retail sales slowing in a pattern consistent with regional trends.
